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Wal-Mart and Other Big Box Retailers Want a Piece of Panama’s Bustling Economy

Article Summary:

A strong American presence, its fierce economic growth, and the benefits of the Trade Promotion Agreement (TPA) in force with the United States, has major retailers such as Wal-Mart, Walgreens, and JC Penney, evaluating the possibility of establishing operations in Panama.

Photo Credit: Entorno Inteligente

Original Article Text From Entrono Inteligente via Google Translate :

PANAMA: U.S. Retailers seek to exploit TPC with Panama

The strong presence of American and Canadian retirees in the country, economic growth and the benefits of the Trade Promotion Agreement (TPA) in force with the United States (U.S.) has led to major retailers (retailers) of that country to evaluate the possibility of establishing operations in Panama. And in that group, the cases of companies Wal-Mart, Walgreens and JC Penney.

Mario Jaramillo, Panama’s ambassador in Washington DC, told the Financial Capital representatives of these companies have approached the Panamanian embassy in the U.S. capital for meet the requirements provided by the TPC for the establishment of companies retailing in Panama.

According to the agreement with the CPC since June of this year the U.S. firms in the retail trade may enter the market Panamanian always invest a minimum of $ 3 million to settle in the country.

Jaramillo explained that this group of large retailers Wal-Mart is the most firm is advancing efforts to break into the Panamanian market, driven by the presence of more than 50,000 American and Canadian retirees in various regions of the country like Panama City, Coronado, Pedasi, Boquete, Volcan and Cerro Punta, as well as strong economic growth experienced by the country since several years ago.

Panamanian diplomat added that University of Knowledge parallel and Galloudet University, based in the Washington DC area, have signed an agreement to establish a representation of the university that specializes in training people with hearing disabilities, which address the needs of this sector population level in Central America and said the agreement will involve an investment of $ 3 million and the formation of 200 people in the management of sign language in both Spanish and English, to facilitate the attendance of students in the region U.S.

President of the Commission on Macroeconomic and Finance of the Panamanian Association of Business Executives, Ernesto Bazan, generally considered to be any kind of investment you get to Panama, it is certainly a good source for generating employment, which benefits the country in many ways.

However, he warned that foreign and local investments require a favorable and an example of this is that a city facing an energy crisis and where you can not use the air conditioners certainly cease to be attractive to any company dedicated to retail.

Minister for Economy and Finance, Frank De Lima, any investment you make in Panama U.S. retailers will welcome the country, it will help increase the supply product in the local market and could lead to a reduction in the cost of them as a result of competition, but recalled that the companies will have to compete with Panamanian businesses who are quite efficient and in many cases have come successful in the presence foreign companies.

“There wasa Sears here and did not do very well, here the business class, Panamanian merchants, is extremely competitive. And, for example, have to compete with Walgreens is Pharmacies Arrocha, this will be an interesting competition. But any investment to come to the country would be welcome, “he said.

Meanwhile, economist and former Minister of Economy and Finance, William Chapman, estimated that the main impact it can have on the local economy the arrival of such U.S. companies is that as they handle volumes of goods handled Panamanians traders, their presence could help reduce the cost of many products in the local market.

“This surely their products directly imported from China and other Asian countries, in very large volumes, which could have a positive effect on prices, that’s basically the impact I see, “he said, but admitted that this could involve market exit of some firms.

Chapman also recalled that “the Panamanian traders are not crippled” and the example mentioned that clothing prices in Panama are not found anywhere in the world, so we have to see if American retailers know what they are getting into.

Link to Original Article:

From Entrono Inteligente

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